What about x auditing your payroll at anytime, or inspecting your trucks or uniforms displaying a patch or holding you hostage waiting for a late truck.
Buying a Fedex Ground Route
- Thread starter Xquestionman
- Start date
Xquestionman
Member
Thanks all for the input. I am meeting with the seller next week. Its a 5 PSA + 1 sub in an ISP state with the 5min. I have his settlement sheets and am going through them. I'll have to see exactly what his 'real' expenses are. He has 7 total trucks 1/2 are newer the others are way old. I'll probably be back with more questions....
It will be fine
Well-Known Member
Has he negotiated his ISP contract yet? That could be very bad for you if not. I wouldn't want to negotiate having just bought a bunch of routes. I also wouldn't want someone who has every intention of leaving negotiating a contract that I'd be stuck with after buying.
Xquestionman
Member
I don't know, but that is a good point. IF it has not already been negotiated who would you suggest assist me with negotiating it?
Glad to help you but there are so many intangibles it would take us another month to go over them. Keep in mind what Bounty has told you is the norm not the exception. You're going to hate having the payroll records of your private corporation audited by X in the same vein as the IRS. When they do it ask them to identify the specific rule of law that allows them to do it. They can't provide it because it doesn't exist but it doesn't matter to them because the law doesn'r apply to X.
Xquestionman
Member
So if little is negotiable then what are the few things that are?
It will be fine
Well-Known Member
There are some consultants I've heard about. I doubt they would be worth any money. If it gets to that point you can PM me and I can tell you the basic script they will follow. I doesn't change much, I've done several negotiations and it's the same dance every time.
Xquestionman
Member
Thanks.
Cactus
Just telling it like it is
That's a laugh.
MrFedEx
Engorged Member
Hey,wait a minute!! You mean X controls everything? I can't believe it. Why...that would be a misrepresentation and the contractors would just be a front for the corporation pretending they weren't really pulling the strings. Not FedEx!!
If you look at Sammy or IWBF real close, the awful truth is revealed.
They're puppets!!
And on the day the courts agree with you, X will tweak the model unless you get the law changed. Oh, wait. We've been down this road before.
It will be fine
Well-Known Member
Just read the Alexander case and the settlement terms. Contractors are only due for a settlement for weeks they drove a truck on a full time basis. They are only eligible for the overtime class if they drove vehicle under 10k. So even in California a contractor like me that sits on his couch most of the day is properly classified as a contractor. But don't let reality and facts influence your beliefs about the legality of the model.
Here are some facts that simply cannot be disputed. A contractor is at the mercy of a consumption dependent, global service company with mounting acquisition and air fleet upgrade driven debt financed with bond issues.A company that is staring down the gun barrel of another global recession and has had it's stock fall by a third and saw it fall all the way down to 33 bucks a share in the last recession. A stubborn and ageing CEO who has 10 kids to 2 different woman making the future board control uncertain. As a so called independent contractor you will never do things your way . You will do things in a way that is agreeable to that company. Every movement, every decision is subject to the overriding governance and control of a company whose power makes what little you have totally inconsequential. A puppet? You could say that. But to me you are nothing more 21st century equivalant of a collective farm manager.
There is a lot of good information here. I do applaud Bacha we have had our runs ins but you have been extremely informative. Mrfred and bounty are the same as always, differing opinion is wrong in there eyes.
Speaking from my side and opinion, model is not going anywhere, in my case the growth has been unbelievable in the last 3 years roughly 45% (this is not the norm but 10-20% annual is possible in the right areas). There are days that you will be irritated but for the most part we like what we do as multi owners.
I'm not sure why the stock price has been brought up in multiple different posts here recently. The market is being blown up which is very much due so everything is down substantially but I don't see that as a negative at all. I bought these routes because I firmly believe another recession is coming. Ground kept Fedex running since 2007 and will again in another recession. Labor market would get terrible again so contractor margins go up even if there is a small decline in volume. Everyone wants a secure job in a recession even if it is a "terrible job" in some people's words.
This is not for everyone. There are huge aggrivations but it is a fairly safe investment with good growth possibilities in the right area.
Speaking from my side and opinion, model is not going anywhere, in my case the growth has been unbelievable in the last 3 years roughly 45% (this is not the norm but 10-20% annual is possible in the right areas). There are days that you will be irritated but for the most part we like what we do as multi owners.
I'm not sure why the stock price has been brought up in multiple different posts here recently. The market is being blown up which is very much due so everything is down substantially but I don't see that as a negative at all. I bought these routes because I firmly believe another recession is coming. Ground kept Fedex running since 2007 and will again in another recession. Labor market would get terrible again so contractor margins go up even if there is a small decline in volume. Everyone wants a secure job in a recession even if it is a "terrible job" in some people's words.
This is not for everyone. There are huge aggrivations but it is a fairly safe investment with good growth possibilities in the right area.
I stated no opinion just a few facts!
Cactus
Just telling it like it is
Once Fred stops paying off the "right people" you'll see just how fast the courts change their minds. In the meantime, find some sucker.....uh, I mean buyer to purchase your (cough, cough) business.
Last edited:
Considering the profit margin, why would Fred stop paying them off?
How much do the routes go for? I can't imagine this would be the best way to invest your money. You get yourself an apartment building and you have money coming in from rent and you have something tangible that will increase in value over time. You wouldn't be at the whim of FedEx or any other corporation. If you can get tenants whose housing costs are subsidized by the state you wouldn't even have to worry about people not paying their rent either. Just keep up on maintenance and make sure everyone behaves and gets along and you're all set. No trucks, no employees, no packages, just a building and the people that live there.
I have invested in real estate and will again but never apartments. The ROI is extremely low and the hassles and stresses of multiple renters and problems of a structure old enough to pay $500,000 would be ridiculous. After paying taxes, maintenance, carryover with evictions not be rented most of the time makes real estate a long term investment where you are banking on 2-10% annual growth. I am not saying you can't make money or fix/flip for fast money but the monthly ROI of a slum lord is very low in most circumstances.
Buy some routes and they grow 10%+ a year, just as many irritations with FedEx, fairly secure and possible to make $100,000+ a year while your routes grow. As you grow you can sell off some here and there getting all your investment back and still have multiple routes making owner $100k being fully paid back.
There are a lot of places to invest and a lot of us have but honestly it is not a bad investment in the least and has the potential to be extremely lucrative.
